49th meeting of GST Council
The GST Council makes recommendations to the Union Government and the State Government based on the issues related to GST. There are 33 members of the council. Of these 31 are from states and UT and 2 are from the centre. The 49th meeting of the council was recently chaired by Finance Minister Smt Nirmala Sitaraman. Outstanding GST cess dues to the states were cleared.
Key Highlights of the 49th GST Council Meet
- GST on liquid jaggery, pencil sharpeners, and tracking devices was reduced
- A report of the GST Appellate Tribunal was adopted; certain modifications were introduced
- Capacity-based taxation introduced in certain sectors
To Plug the leakages in GST collections
There are leakages in the revenue collection from certain products like tobacco, Gutkha, Pan Masala, etc. The following recommendations were made for these products
- The capacity-based levy will not be prescribed for these products
- Compliance measures to plug evasions
Other changes introduced
- GST on rab reduced from 18% to 5%
- GST on pencil sharpener reduced from 18% to 12%
- Council recommended Amnesty Scheme
- Late Fees for returns rationalized
GST compensation pending as of June 2022 was the highest for Maharashtra, 2102 crores; followed by Karnataka 1934 crores, followed by Delhi, Rs 1212 crores.
What is GST Appellate Tribunal?
It will act as a quasi-judicial body. It will solve disputes between individuals, governments, businesses, etc.
Category: Economy & Banking Current Affairs - 2024